Machinery Breakdown Insurance
Cover for sudden breakdown of your plant and machinery.
Fire insurance does not cover a motor that burns out or a gearbox that shatters. Machinery breakdown insurance does: it covers sudden internal electrical and mechanical failures of plant, machinery and equipment, so production can restart quickly.
Who needs it
- Factories and processing units
- Hospitals, hotels and malls with lifts, chillers and generators
- Businesses relying on boilers, compressors or transformers
What's covered
Mechanical breakdown
Sudden breakage, seizure and failure of moving parts.
Electrical breakdown
Short circuits, overheating and burnout.
Operator error
Damage from accidental mishandling.
Repair and replacement
Including dismantling and re-erection costs.
What's not covered
We show you the catch before you buy. Common exclusions (exact terms vary by insurer and plan):
- Wear and tear and gradual deterioration
- Losses covered under a fire policy
- Faults existing when cover starts
- Consumables such as belts, tools, fuel and lubricants
Popular add-ons
Machinery loss of profit
Lost profit while production is stopped after a covered breakdown.
Deterioration of stock
Spoiled stock after a refrigeration breakdown.
Documents checklist
To get a quote or buy
- List of machines with make, model, year and capacity
- Replacement values
- Maintenance contracts and records
- Business KYC: PAN, GST certificate and address proof
To make a claim
- Claim form and policy copy
- Engineer's or manufacturer's report on the cause
- Repair estimate and invoices
- Maintenance records
Frequently asked questions
Fire policy or machinery breakdown: what is the difference?
Fire policies cover external perils like fire and flood. Machinery breakdown covers internal failures. Most factories need both.
Is an annual maintenance contract required?
Not always, but good maintenance records make claims smoother and may be required for some equipment.
Related cover
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Protects contractors' plant and machinery such as excavators, cranes and mixers against accidental damage on site, in storage and while moving within the site.
ExploreContractors' All Risk (CAR) Insurance
Covers civil works under construction, materials on site and third-party liability for the length of the project.
ExploreErection All Risk (EAR) Insurance
Covers the erection and installation of machinery, plant and steel structures, including storage on site and the testing period.
ExploreNot sure what you need?
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